Advanced digital skills boost employer revenue by 400%

Advanced digital workers are adding $41 billion to Australia’s GDP each year, according to extensive Gallup research commissioned by Amazon Web Services.

The AWS Gallup Australia Digital Skills Study 2023 interviewed more than 9,000 worldwide employers – including 775 employers in Australia – which revealed that even when basic and intermediate digital skills are factored in, the result is a $68-billion yearly boost to Australia’s GDP.

“By leveraging the benefits of workers with advanced digital skills, such as those with cloud architecture skills, employers can improve their bottom line, reduce risk, and create a more innovative and competitive business,” Iain Rouse, Amazon Web Services country director, worldwide public sector Australia and New Zealand, said.

“Additionally, by providing opportunities for employees to develop their skills, employers can improve employee satisfaction and retention, leading to a more stable and motivated workforce.”

Boosts to employer revenue, employee pay

The Gallup research also discovered that Australian employers who employ workers with advanced digital skills report annual revenues 400% higher than those that employ workers with only basic digital skills.

“As more businesses move to the cloud, it’s important to ensure the capabilities of the organisation align with its technological transformation plans,” Rouse added.

“Putting digital skills at the centre of transformation plans ensures that employees are equipped with the skills they need for success, and that the organisation will have the skills required during, and on completion of their transformation journey.”

The Gallup research revealed that the average worker with advanced digital skills earns 24% more than a worker with similar education and experience who does not use any digital skills on the job, while a worker with intermediate digital skills earns 16% more.

“Beyond enjoying higher salaries, the AWS and Gallup study also showed that nearly 65% of Australian workers who use advanced digital skills express higher job satisfaction, compared to 56% that use basic digital skills,” Rouse said. “In fact, organisations that rely on advanced digital skills and cloud technologies significantly outperform their non-digital peers.”

In August 2022, the Australian government said it was one step ahead in actualizing its target of 1.2 million tech-related jobs by 2030, as the tech sector laid out in a new report its plans for the tech workforce.

Building the talent pipeline

The report also showed that employers are finding it difficult (71%) to find the required staff with the digital skills that they need. Two-thirds say that it is highly likely that they will adopt emerging technologies such as 5G, robotics and artificial intelligence in the workplace as a standard part of their business in the future.

“Technology will continue to change at an exponential rate and so significant ongoing skills development will be needed as technology and, as a consequence, work continues to evolve,” Julian Clarke, human resource executive, Telstra, said.

“The bottom line is that organisations need to not only start developing the skills they need today, but also keep pace with innovation by building the skills they will need in the future.”

All employers are seeking to gain a significant advantage by finding the right employees with the required skillset.

“To keep pace and unlock these benefits, organisations need to attract, retain, motivate and inspire the best talent with the right skills, with a strong employee value proposition,” said Clarke.

“Organisations also have a role to play in building the talent pipeline, through investing in training their own people – such as the micro-credentials we’ve developed in partnership with Australian universities – as well as collaborating with government on initiatives to build the skills Australia needs in the future.”

Telstra is working with universities to enhance digital skills micro-credentials similar to the technical skills or STEM micro-credentials that have been developed around work-integrated experiences like data analytics, innovation and intrapreneurship, and product management.

“These six- to eight-week programs upskill employees in areas complementary to their current jobs, and more than 2000 of our people have completed a micro-credential so far,” Clarke added.

Industry micro-credentials are emerging as the latest hiring preference for many employers across the world as they begin leaning into skills-based hiring, according to a new report.